{"id":1617,"date":"2015-03-28T12:55:04","date_gmt":"2015-03-28T12:55:04","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2015\/03\/puerto_ricos_debt_gets_downgra"},"modified":"2022-03-22T13:24:39","modified_gmt":"2022-03-22T18:24:39","slug":"puerto-ricos-debt-gets-downgra","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/puerto-ricos-debt-gets-downgra\/","title":{"rendered":"Puerto Rico\u2019s Debt Gets Downgraded to “B” by Fitch Ratings"},"content":{"rendered":"

\t\t\t\tCredit rating agency Fitch Ratings (“Fitch”) has downgraded the general obligation and related debt of Puerto Rico to “B”, rating it even further into junk territory and three notches under investment grade, because of worries about the U.S. territory’s ability to go through with planned financing. As a result of the downgrade of the general obligation debt, the Puerto Rico Aqueduct and Sewer Authority senior lien revenue bonds were also downgraded.<\/p>\n

The ratings reduction is related to a new law in the Commonwealth. The law is supposed to help overhaul public debt by letting certain government agencies with a reported $19.4 billion in outstanding bonds restructure their debt. Fitch is worried that because of the way the restructuring is delineated in the law, this could result in debt payment suspensions while “precluding timely payments” of principal plus interest until proceedings are finalized.<\/p>\n

Fitch also reduced the rating of Puerto Rico’s sales tax entity COFINA, pension funding bonds, and the Public Building Authority government facilities’ revenue bonds. The credit rating agency pointed to mixed economic signs, such as accelerated year-over-year declines in the labor force and yearly drops in the monthly economic activity index of the Government Development Bank, as the reason for the new downgrades. Recently, Standard & Poor’s also reduced the general obligation debt of Puerto Rico to junk bond status- a BB, which is right below investment grade. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Credit rating agency Fitch Ratings (“Fitch”) has downgraded the general obligation and related debt of Puerto Rico to “B”, rating it even further into junk territory and three notches under investment grade, because of worries about the U.S. territory’s ability to go through with planned financing. As a result of the downgrade of the general […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3922,4039],"tags":[2847,3471],"class_list":["post-1617","post","type-post","status-publish","format-standard","hentry","category-municipal-bonds","category-puerto-rico-bond-funds","tag-prepa","tag-puerto-rico-municipal-bonds"],"yoast_head":"\nPuerto Rico\u2019s Debt Gets Downgraded to "B" by Fitch Ratings — Investor Lawyers Blog — March 28, 2015<\/title>\n<meta name=\"description\" content=\"Credit rating agency Fitch Ratings ("Fitch") has downgraded the general obligation and related debt of Puerto Rico to "B", rating it even further into — March 28, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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